Job Growth in Healthcare and the EHR Bubble

Posted on August 11, 2011 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 10 blogs containing over 8000 articles with John having written over 4000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 16 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit and LinkedIn.

It’s a crazy world that we’re living in today. The market is on a roller coaster. The riots in London. A lot of other crazy things happening. Not the least of which is the high unemployment in the US. Despite the challenging times, I’m not seeing as many of the same challenges in healthcare IT.

This was higlighted in some recent tweets I saw that talked about the job growth that’s happened in healthcare. That’s right, healthcare has actually had job growth. It’s quite amazing to consider, no?

Healthcare IT is especially interesting thanks to the $36 billion in EHR stimulus money. It’s a frother EMR and EHR market out there and I expect the froth is going to continue for another couple years. Is it fair to say that we’re in an EMR and healthcare IT bubble? I think so.

The question I’m starting to consider is what’s going to happen when the bubble pops? I’m not sure that we’re going to see one big pop in the EMR market. Maybe I’m wrong, but I think that we’re going to see a long protracted fall out of EMR and EHR companies. I guess this type of slow failing EMR companies is better than a major pop, but it still doesn’t sound good.

Well, at least it doesn’t sound good for those clinics who are using the EMR software from the EMR companies that fail. However, it’s going to present some interesting opportunities for EMR companies that can clean up the mess that’s left. Of course, most of us won’t know the details of the mess. We’ll just see flowery announcements about EMR companies selling off to larger EHR companies. However, those acquisitions will be a great customer acquisition buy for the EHR companies who have the cash and can transition users effectively to their EHR software.

How far off is this? I’d say at least 2 years. So, the next 2 years are going to be an interesting time for EHR vendors that are trying to position themselves for these types of acquisitions.